| This paper starts from the theoretical study of insider trading regulation legitimacy in our country, put forward the idea of legal supervision system.On the basis of the new political economics interests game model, this paper explains the cause of the small and medium investor protection as the core, according to which proposes the external regulatory model of insider trading regultation. In the process of analysis, with a large number of irregular samples as the research object, clarify the development of securities market insider trading and its regulation in China, and its characteristics and influencing factors. Using empirical research tools, such like event study method and Logit model, to analysis quantitatively the related affecting factors and the importance of legal regulation.Through theoretical models and empirical studies, concrete countermeasures are putting forward on insider trading regulation in China.Theoretical research shows that:(1) By information monopoly and artificially obstacles, insider trading makes both parties unfairly on access to information channels, cause both parties in the trade income inequality. Because of the existence of’tax effect’, insider trading intensifies the unfair of wealth distribution, furthermore, increasing the market transaction cost and reducing the market efficiency. The loss of both fairness and efficiency, constituting the legal basis of insider trading have been banned and regulation.(2) Insider trading administrative regulation goal is two-fold, and because the party which gets compensation does not match the truly aggrieved party, therefore, this way is unable to optimize of the overall welfare. Legal regulation is the guarantee of investors’rights, and is advantageous to the improvement of total welfare, so legal regulation is the most compatible measure of matching fairness and efficiency.(3) Financial investors securities trading behavior is influenced by its "mental accounts" and the impact of risk preference, legal regulation plays an important role on the investment decision-making and influence part of insider traders exiting by changing their trading strategy and reduces the insider trading volume at the same time.(4) The significance of small and medium-sized investors protection is in addition to the law of justice demands, but also proves the maintenance and training of the interest groups, accelerating the formation of the external supervision power effectively and balancing the power of interests paties.The empirical research shows that:(1) The nature of equity, equity concentration degree, financial marketization degree and index law constitute the influence factors of insider trading. State-owned listed companies get excess returns by insider trading higher than non-state-owned listed companies, involved in insider trading level of incentives and motivation is stronger. Excess return of the Shanghai stock market insider trading is higher than that of Shenzhen, Shanghai insider trading motivation levels is higher.(2) The more concentrated the equity of the listed company, the higher the percentage of controlling stockholders, gives the greater the power of large shareholders, can make the big shareholders such as insider who obtain higher excess return through status and power advantage, that is to say, the more concentrated the stake, through mastering the inside information of profit motive. And the role of the legal system on the contrary, the law index is higher, the insider exchange gain excess returns is lower, the perfection of legal system environment helps reduce the motivation of insider trading.(3)The improvement of the legal system against insider trading, brings the ascension of legal regulation, can increase the regulators found that the probability of insider trading. Because the legal supervision cannot make adjustments in the short term, on insider trading, we can improve the detection probability of effective improve the legal regulation, increase its cost to face punishment, so that part of low risk preference is crowd out from the insider trading.On the basis of theoretical analysis and empirical research, proposes suggestions on the insider trading legal supervision system in China as followed:(1) To perfect securities legislation. To clear legal regulation subject, under the condition of the CSRC as the agent of law enforcement agencies, endows the CSRC legislative power, make up for the lack of legal regulation subject. Revision of the securities law to set up to protect the interests of the investors value orientation, the kernel and the legal definition of civil legislation.(2) Securities market allocation actively plays more important role. The functions and position location change of institutional investors, strengthen the information disclosure system, intensify education of medium and small investors.(3) Improve the company internal control.With the same rights, promote the cumulative voting system and carry out the board right system.(4) The other complementary mechanism. Add the probability of informed trading in exchange, early warning mechanism to monitor system, relying on industry self-discipline organization and rewards whistleblowers, public opinion and social supervision power. |
PDF Full Text Request